A new study conducted by researchers from Harvard Business School and the University of California, Berkeley, alongside partner institutions, reveals that mobile phone data significantly expands access to credit and improves financial well-being in Kenya. The research, which analyzed anonymized data from digital lender Tala, indicates that approved digital loan borrowers experience better financial outcomes than those rejected.

• Approved borrowers were 24 percent more likely to be employed or self-employed and reported 21 percent higher monthly income.
• The study, titled “Digital Lending and Financial Well-being: Through the Lens of Mobile Phone Data,” involved 20,092 applicants.
• Assistant Professor Jung Koo Kang emphasized that access to small digital loans can open economic opportunities and lead to measurable improvements in well-being, challenging the belief that low-income borrowers misuse credit.